1.. Suppose $2000 is invested at 6% annual interest rate for 10 years and the interest is compounded monthly. How much will the investment be worth at the end of the 10 years?
2. Suppose John invests his tax refund of $1666 in an account that earns interest compounded continuously at the rate of 3.5%. How much will John have in 7.5 years? Show your work details.
3. What is the present value of an account that will be worth $10,000 in 5 years if the annual interest rate is 10% and the interest is compounded continuously? Show your work details.
4.A company shows the following profit figures for the years 2000, 2004, and 2008. In 2000 the profit was $250 million; in 2004, the profit was $400 million; and, in 2008, the profit was $550 million. If x is the number of years after 2000, write a linear function representing this profit. Using this linear model determine what the projected profit will be in the year 2020. Show work details.
5. The table shows the year and the number of people unemployed in a particular city for several years. Determine whether the trend appears to be approximately linear. If so, and assuming the trend continues, in what year will the number of unemployed reach 15 people?
Year 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
Number Unemployed 750 670 650 605 550 510 460 420 380 320
6. Wilbur and Cody are selling pies for a school fundraiser. Customers can buy cherry pies and blackberry pies. Wilbur sold 8 cherry pies and 2 blackberry pies for a total of $110. Cody sold 7 cherry pies and 6 blackberry pies for a total of $177. What is the cost each of one cherry pie and one blackberry pie? Show work details.
In: Finance
Year Name MinPressure_before Gender_MF Category alldeaths
1950 Easy 958 1 3 2
1950 King 955 0 3 4
1952 Able 985 0 1 3
1953 Barbara 987 1 1 1
1953 Florence 985 1 1 0
1954 Carol 960 1 3 60
1954 Edna 954 1 3 20
1954 Hazel 938 1 4 20
1955 Connie 962 1 3 0
1955 Diane 987 1 1 200
1955 Ione 960 0 3 7
1956 Flossy 975 1 2 15
1958 Helene 946 1 3 1
1959 Debra 984 1 1 0
1959 Gracie 950 1 3 22
1960 Donna 930 1 4 50
1960 Ethel 981 1 1 0
1961 Carla 931 1 4 46
1963 Cindy 996 1 1 3
1964 Cleo 968 1 2 3
1964 Dora 966 1 2 5
1964 Hilda 950 1 3 37
1964 Isbell 974 1 2 3
1965 Betsy 948 1 3 75
1966 Alma 982 1 2 6
1966 Inez 983 1 1 3
1967 Beulah 950 1 3 15
1968 Gladys 977 1 2 3
1969 Camille 909 1 5 256
1970 Celia 945 1 3 22
1971 Edith 978 1 2 0
1971 Fern 979 1 1 2
1971 Ginger 995 1 1 0
1972 Agnes 980 1 1 117
1974 Carmen 952 1 3 1
1975 Eloise 955 1 3 21
1976 Belle 980 1 1 5
1977 Babe 995 1 1 0
1979 Bob 986 0 1 1
1979 David 970 0 2 15
1979 Frederic 946 0 3 5
1980 Allen 945 0 3 2
1983 Alicia 962 1 3 21
1984 Diana 949 1 2 3
1985 Bob 1002 0 1 0
1985 Danny 987 0 1 1
1985 Elena 959 1 3 4
1985 Gloria 942 1 3 8
1985 Juan 971 0 1 12
1985 Kate 967 1 2 5
1986 Bonnie 990 1 1 3
1986 Charley 990 0 1 5
1987 Floyd 993 0 1 0
1988 Florence 984 1 1 1
1989 Chantal 986 1 1 13
1989 Hugo 934 0 4 21
1989 Jerry 983 0 1 3
1991 Bob 962 0 2 15
1992 Andrew 922 0 5 62
1993 Emily 960 1 3 3
1995 Erin 973 1 2 6
1995 Opal 942 1 3 9
1996 Bertha 974 1 2 8
1996 Fran 954 1 3 26
1997 Danny 984 0 1 10
1998 Bonnie 964 1 2 3
1998 Earl 987 0 1 3
1998 Georges 964 0 2 1
1999 Bret 951 0 3 0
1999 Floyd 956 0 2 56
1999 Irene 987 1 1 8
2002 Lili 963 1 1 2
2003 Claudette 979 1 1 3
2003 Isabel 957 1 2 51
2004 Alex 972 0 1 1
2004 Charley 941 0 4 10
2004 Frances 960 1 2 7
2004 Gaston 985 0 1 8
2004 Ivan 946 0 3 25
2004 Jeanne 950 1 3 5
2005 Cindy 991 1 1 1
2005 Dennis 946 0 3 15
2005 Ophelia 982 1 1 1
2005 Rita 937 1 3 62
2005 Wilma 950 1 3 5
2005 Katrina 902 1 3 1833
2007 Humberto 985 0 1 1
2008 Dolly 963 1 1 1
2008 Gustav 951 0 2 52
2008 Ike 935 0 2 84
2011 Irene 952 1 1 41
2012 Isaac 965 0 1 5
2012 Sandy 945 1 2 159
Open Hurricane data.
SETUP: Is it reasonable to assume that average hurricane pressure for category 4 is different from that of category 1? Given the data, your job is to check if this assertion is indeed reasonable or not. HINT: Read Lecture 24.
19. What would be the correct Null-Hypothesis?
20. The P-value is 3.33E-09. What can be statistically concluded?
21. Write a one-line additional comment.
In: Statistics and Probability
Year Name MinPressure_before Gender_MF Category alldeaths 1950 Easy 958 1 3 2 1950 King 955 0 3 4 1952 Able 985 0 1 3 1953 Barbara 987 1 1 1 1953 Florence 985 1 1 0 1954 Carol 960 1 3 60 1954 Edna 954 1 3 20 1954 Hazel 938 1 4 20 1955 Connie 962 1 3 0 1955 Diane 987 1 1 200 1955 Ione 960 0 3 7 1956 Flossy 975 1 2 15 1958 Helene 946 1 3 1 1959 Debra 984 1 1 0 1959 Gracie 950 1 3 22 1960 Donna 930 1 4 50 1960 Ethel 981 1 1 0 1961 Carla 931 1 4 46 1963 Cindy 996 1 1 3 1964 Cleo 968 1 2 3 1964 Dora 966 1 2 5 1964 Hilda 950 1 3 37 1964 Isbell 974 1 2 3 1965 Betsy 948 1 3 75 1966 Alma 982 1 2 6 1966 Inez 983 1 1 3 1967 Beulah 950 1 3 15 1968 Gladys 977 1 2 3 1969 Camille 909 1 5 256 1970 Celia 945 1 3 22 1971 Edith 978 1 2 0 1971 Fern 979 1 1 2 1971 Ginger 995 1 1 0 1972 Agnes 980 1 1 117 1974 Carmen 952 1 3 1 1975 Eloise 955 1 3 21 1976 Belle 980 1 1 5 1977 Babe 995 1 1 0 1979 Bob 986 0 1 1 1979 David 970 0 2 15 1979 Frederic 946 0 3 5 1980 Allen 945 0 3 2 1983 Alicia 962 1 3 21 1984 Diana 949 1 2 3 1985 Bob 1002 0 1 0 1985 Danny 987 0 1 1 1985 Elena 959 1 3 4 1985 Gloria 942 1 3 8 1985 Juan 971 0 1 12 1985 Kate 967 1 2 5 1986 Bonnie 990 1 1 3 1986 Charley 990 0 1 5 1987 Floyd 993 0 1 0 1988 Florence 984 1 1 1 1989 Chantal 986 1 1 13 1989 Hugo 934 0 4 21 1989 Jerry 983 0 1 3 1991 Bob 962 0 2 15 1992 Andrew 922 0 5 62 1993 Emily 960 1 3 3 1995 Erin 973 1 2 6 1995 Opal 942 1 3 9 1996 Bertha 974 1 2 8 1996 Fran 954 1 3 26 1997 Danny 984 0 1 10 1998 Bonnie 964 1 2 3 1998 Earl 987 0 1 3 1998 Georges 964 0 2 1 1999 Bret 951 0 3 0 1999 Floyd 956 0 2 56 1999 Irene 987 1 1 8 2002 Lili 963 1 1 2 2003 Claudette 979 1 1 3 2003 Isabel 957 1 2 51 2004 Alex 972 0 1 1 2004 Charley 941 0 4 10 2004 Frances 960 1 2 7 2004 Gaston 985 0 1 8 2004 Ivan 946 0 3 25 2004 Jeanne 950 1 3 5 2005 Cindy 991 1 1 1 2005 Dennis 946 0 3 15 2005 Ophelia 982 1 1 1 2005 Rita 937 1 3 62 2005 Wilma 950 1 3 5 2005 Katrina 902 1 3 1833 2007 Humberto 985 0 1 1 2008 Dolly 963 1 1 1 2008 Gustav 951 0 2 52 2008 Ike 935 0 2 84 2011 Irene 952 1 1 41 2012 Isaac 965 0 1 5 2012 Sandy 945 1 2 159 Test if there is a significant difference in the death by Hurricanes and Min Pressure measured. Answer the questions for Assessment. (Pick the closest answer)
7. What is the P-value?
8. What is the Statistical interpretation?
9. What is the conclusion?
In: Statistics and Probability
The deliverable for this assignment is a written report. You must address the following questions in your analysis. Question 1: What prompted the pricing change in the case of Netflix and the debit card fee in the case of BoA? What explanation did the companies offer their customers? Do additional research as required to answer these questions. Question 2: What explains customers’ reactions to the pricing plan change announced by Netflix and the fee proposal announced by BoA? Include in your discussion what role elasticity may have played. Identify the determinant of elasticity most applicable to the explanation you have provided. Question 3: How do you explain why Netflix and Bank of America reacted differently to essentially similar customer responses? Include in your discussion what role a consideration of elasticity may have played in the company decisions. Do additional reading and research as required. Identify the determinant of elasticity most applicable to the explanation you have provided. Question 4: How long did it take for Netflix to recover lost ground in terms of its subscriber base? Which determinant of elasticity is most applicable to your answer for this question? What did Netflix do to bring about this turnaround? This "compare & contrast" case study is based on two real-world examples of pricing strategy dating back to 2011. The expectation is that you will apply your understanding of elasticity of demand to explain the contrasting final decisions. A reading list is provided for your reference. 1. The Case of Netflix Netflix, the popular online movie rental company, was founded in 1997 by Reed Hastings and Marc Randolph. In 1998, the Netflix.com website was launched; it was the first online DVD rental and sales site. The dominant brick-and-mortar DVD rental company at the time was Blockbuster. In 1999, Netflix debuted its subscription service, allowing subscribers to rent DVDs for monthly subscription fees. Netflix went public on May 23, 2002, listing on NASDAQ with an initial offer price of $15 per share and raising $77.2 million. Between October 2002 and January 2004, the stock price had appreciated by more than 1,500%. The company did a 2-for-1 stock split in February 2004 when the price reached $80 (Caplinger, 2016). At the time of its IPO in 2002, Netflix had about 600,000 subscribers. In 2007, it introduced online streaming, allowing subscribers to instantly watch TV shows and movies on their laptops or computers. Between 2007 and 2011, the number of subscribers in the U.S. grew from 7.48 million to 23.53 million (Dunn, 2017). On July 11, 2011, the stock closed at $41.53 (price adjusted for dividends). The Misstep: On July 12, 2011, Netflix split up its existing one DVD at a time + unlimited streaming plan for $9.99 into 3 separate plans: (1) DVD only starting at $7.99, (2) streaming only for $7.99, and (3) DVD + streaming for $15.98 (Gilbert, 2012). The rate hike caused a loss of subscriber base from 24.8 million subscribers in end-June to 23.8 million subscribers in end-September (Pepitone, 2011). By July 29, the stock price had dropped to $37.99, a drop of 8.5% from July 11. By November 25, it had tumbled to $9.12, a plunge of almost 78% since the day of the announcement (closing prices from NASDAQ). The Final Decision: Despite subscribers and investors voting with their feet, the company defended its decision – albeit apologetically - and implemented the new pricing plans. 2. The Case of Bank of America (BoA) Bank of America was established in 1904 as Bank of America National Trust and Savings Association. The Bank of America (BoA) entity was formed in 1998 as a merger between the erstwhile BankAmerica Corporation and NationsBank. From checking and savings accounts to debit cards, credit cards, loans, and asset management, BoA provides a range of services for both households and businesses. In the words of CEO Brian Moynihan, "Bank of America has been helping connect people to what is most important to them for more than 200 years." (Bank of America website). In 2010, the bank had $916.11 billion in deposits. At 12% of market share, this ranked BoA number one in terms of deposits. It was followed closely by JP Morgan Chase and Wells Fargo, each of which had about 10% market share (Comoreanu, 2017). BoA stock is listed on the NYSE. On April 1, 1998, the stock closed at $38 (price adjusted for dividends). On September 1, 2008, the stock closed at $35. The bank suffered losses during the financial crisis; monthly stock price data reveal a low of $3.95 on February 1, 2009. After recovering to $17.83 by March 1, 2010, the stock price started declining again. The downtrend continued in 2011, with a drop of almost 19 per cent between March 1 and June 1 (from $13.93 to $11.24), and another 29 per cent to $7.91 by September 1, 2011. The Misstep: On September 29, 2011, Bank of America announced that, beginning in early 2012, it would start charging its customers $5 a month for using their debit cards (Rauch, 2011). The announcement was met with angry outrage by customers on social media. Reflecting the negative sentiment, stock price declined 7 per cent in the week following the announcement, from $6.35 on September 29 to $5.90 on October 6. It had recovered about 8 per cent to $6.83 on October 31, 2011; it may be noted that this price was still almost 14 per cent lower compared to the price on September 1. The Final Decision: Following the tremendous backlash from its card holders, BoA abandoned its plans. On November 1, 2011, it announced that it would not implement the debit card usage fee (Bernard, 2011).
In: Economics
Open Hurricanes data.
Test if there is a significant difference in the death by Hurricanes and Min Pressure measured. Answer the questions for Assessment. (Pick the closest answer)
7. What is the P-value?
8. What is the Statistical interpretation?
9. What is the conclusion?
Year Name MinPressure_before
Gender_MF Category alldeaths
1950 Easy 958 1
3 2
1950 King 955 0
3 4
1952 Able 985 0
1 3
1953 Barbara 987 1
1 1
1953 Florence 985 1
1 0
1954 Carol 960 1
3 60
1954 Edna 954 1
3 20
1954 Hazel 938 1
4 20
1955 Connie 962 1
3 0
1955 Diane 987 1
1 200
1955 Ione 960 0
3 7
1956 Flossy 975 1
2 15
1958 Helene 946 1
3 1
1959 Debra 984 1
1 0
1959 Gracie 950 1
3 22
1960 Donna 930 1
4 50
1960 Ethel 981 1
1 0
1961 Carla 931 1
4 46
1963 Cindy 996 1
1 3
1964 Cleo 968 1
2 3
1964 Dora 966 1
2 5
1964 Hilda 950 1
3 37
1964 Isbell 974 1
2 3
1965 Betsy 948 1
3 75
1966 Alma 982 1
2 6
1966 Inez 983 1
1 3
1967 Beulah 950 1
3 15
1968 Gladys 977 1
2 3
1969 Camille 909 1
5 256
1970 Celia 945 1
3 22
1971 Edith 978 1
2 0
1971 Fern 979 1
1 2
1971 Ginger 995 1
1 0
1972 Agnes 980 1
1 117
1974 Carmen 952 1
3 1
1975 Eloise 955 1
3 21
1976 Belle 980 1
1 5
1977 Babe 995 1
1 0
1979 Bob 986 0
1 1
1979 David 970 0
2 15
1979 Frederic 946 0
3 5
1980 Allen 945 0
3 2
1983 Alicia 962 1
3 21
1984 Diana 949 1
2 3
1985 Bob 1002 0
1 0
1985 Danny 987 0
1 1
1985 Elena 959 1
3 4
1985 Gloria 942 1
3 8
1985 Juan 971 0
1 12
1985 Kate 967 1
2 5
1986 Bonnie 990 1
1 3
1986 Charley 990 0
1 5
1987 Floyd 993 0
1 0
1988 Florence 984 1
1 1
1989 Chantal 986 1
1 13
1989 Hugo 934 0
4 21
1989 Jerry 983 0
1 3
1991 Bob 962 0
2 15
1992 Andrew 922 0
5 62
1993 Emily 960 1
3 3
1995 Erin 973 1
2 6
1995 Opal 942 1
3 9
1996 Bertha 974 1
2 8
1996 Fran 954 1
3 26
1997 Danny 984 0
1 10
1998 Bonnie 964 1
2 3
1998 Earl 987 0
1 3
1998 Georges 964 0
2 1
1999 Bret 951 0
3 0
1999 Floyd 956 0
2 56
1999 Irene 987 1
1 8
2002 Lili 963 1
1 2
2003 Claudette 979
1 1 3
2003 Isabel 957 1
2 51
2004 Alex 972 0
1 1
2004 Charley 941 0
4 10
2004 Frances 960 1
2 7
2004 Gaston 985 0
1 8
2004 Ivan 946 0
3 25
2004 Jeanne 950 1
3 5
2005 Cindy 991 1
1 1
2005 Dennis 946 0
3 15
2005 Ophelia 982 1
1 1
2005 Rita 937 1
3 62
2005 Wilma 950 1
3 5
2005 Katrina 902 1
3 1833
2007 Humberto 985 0
1 1
2008 Dolly 963 1
1 1
2008 Gustav 951 0
2 52
2008 Ike 935 0
2 84
2011 Irene 952 1
1 41
2012 Isaac 965 0
1 5
2012 Sandy 945 1
2 159
In: Statistics and Probability
Adjusting entries. You have been retained to examine the records of Kathy’s Day Care Center as of December 31, 20X3, the close of the current reporting period. In the course of your examination, you discover the following: On January 1, 20X3, the Supplies account had a balance of $2,350. During the year, $5,520 worth of supplies was purchased, and a balance of $1,620 remained unused on December 31. Unrecorded interest owed to the center totaled $275 as of December 31. All clients pay tuition in advance, and their payments are credited to the Unearned Tuition Revenue account. The account was credited for $75,500 on August 31. With the exception of $15,500, which represented prepayments for 10 months’ tuition from several well-to-do families, all amounts were for the current semester ending on December 31. Depreciation on the school’s van was $3,000 for the year. On August 1, the center began to pay rent in 6-month installments of $21,000. Kathy wrote a check to the owner of the building and recorded the check in Pre- paid Rent, a new account. Two salaried employees earn $400 each for a 5-day week. The employees are paid every Friday, and December 31 falls on a Thursda Kathy’s Day Care paid insurance premiums as follows, each time debiting Pre- paid Insurance:
|
Date Paid |
Policy No. |
Length of Policy |
Amount |
|
Feb. 1, 20X2 |
1033MCM19 |
1 year |
$540 |
|
Jan. 1, 20X3 |
7952789HP |
1 year |
912 |
|
Aug. 1, 20X3 |
XQ943675ST |
2 years |
840 |
Instructions - The center’s accounts were last adjusted on December 31, 20X2. Prepare the adjusting entries necessary under the accrual basis of accounting in the below general journal.
GENERAL JOURNAL – KATHY’S DAY CARE CENTER
|
Date |
Account titles & Explanation |
Debit |
Credit |
|
Dec. 31 |
To record supplies used |
||
|
Supplies Expense |
|||
|
Supplies |
|||
|
Dec. 31 |
To record accrued interest |
||
|
Interest Receivable |
|||
|
Interest Revenue |
|||
|
Dec. 31 |
To record tuition revenue earned |
||
|
Unearned Tuition Revenue |
|||
|
Tuition Revenue |
|||
|
Dec. 31 |
To record depreciation expense |
||
|
Depreciation expense |
|
Accumulated Depreciation: Van |
|||
|
Dec. 31 |
To record expiration of prepaid rent |
||
|
Rent expense |
|||
|
Prepaid Rent |
|||
|
Dec. 31 |
To record accrued salaries |
||
|
Salaries Expense |
|||
|
Salaries Payable |
|||
|
Dec. 31 |
To record expired insurance |
||
|
Insurance expense |
|||
|
Prepaid Insurance |
|||
In: Accounting
Washington County’s Board of Representatives is considering the construction of a longer runway at the county airport. Currently, the airport can handle only private aircraft and small commuter jets. A new, long runway would enable the airport to handle the midsize jets used on many domestic flights. Data pertinent to the board’s decision appear below.
Cost of acquiring additional land for runway $ 63,000
Cost of runway construction 305,000
Cost of extending perimeter fence 19,880
Cost of runway lights 32,000
Annual cost of maintaining new runway 16,000
Annual incremental revenue from landing fees 25,000
In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a new snowplow, which will cost $115,000. The old snowplow could be sold now for $11,500. The new, larger plow will cost $7,000 more in annual operating costs. Second, the County Board of Representatives believes that the proposed long runway, and the major jet service it will bring to the county, will increase economic activity in the community. The board projects that the increased economic activity will result in $76,000 per year in additional tax revenue for the county. In analyzing the runway proposal, the board has decided to use a 10-year time horizon. The county’s hurdle rate for capital projects is 12 percent. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Problem 16-47 Internal Rate of Return; Sensitivity Analysis (Section 1) (LO 16-1, 16-3) In analyzing the runway proposal, the board has decided to use a 10-year time horizon. The county’s hurdle rate for capital projects is 12 percent. The County Board of Representatives believes that if the county conducts a promotional effort costing $30,500 per year, the proposed long runway will result in substantially greater economic development than was projected originally. However, the board is uncertain about the actual increase in county tax revenue that will result. Required: Suppose the board builds the long runway and conducts the promotional campaign. What would the increase in the county’s annual tax revenue need to be in order for the proposed runway’s internal rate of return to equal the county’s hurdle rate of 12 percent? (Round your intermediate calculations and final answer to the nearest whole dollar.)
How do you figure out the required increase in tax revenue?
In: Accounting
QUESTION ONE
You have been provided with the end of year, unadjusted trial balance for Tina’s Managerial Advice business and the balance day adjustments to be implemented. Tina commenced business on 1st July 2018.
Required:
1. Provide the General Journal entries for the:
i) Balance day adjustments on the 31st October 2018;
ii) Reversing entries where required on 1st November 2018.
(9 Marks)
2. Provide an Income Statement for the period ending 31st October 2018.
3. Provide a fully classified Balance Sheet showing.
4. Explain the role of the Prepaid Contents Insurance and the Unearned Advice Commissions Revenue accounts in this business. (2 Marks)
TINA’S MANAGERIAL ADVICE SERVICE
UNADJUSTED TRIAL BALANCE AS AT 31st OCTOBER 2018
ACCOUNT DEBIT $ CREDIT $
Cash at bank 25,440
Accounts Receivable 91,000
Allowance for Doubtful Debts 2,000
Office Supplies Inventory 300
Prepaid Contents Insurance 4,800
Prepaid Rent of offices 12,000
Photocopier (Purchased 1st July 2017) 60,000
Accounts Payable 32,000
Unearned Advice Services Revenue 3,340
VAT Collected (20%) 22,068
VAT Paid (20%) 2,287
Loan from WES Bank Ltd (due 30th June 2025) 80,000
Capital – Tina Tobin 36,219
Drawings – Tina Tobin 10,000
Advice Service Revenue 134,000
Electricity – Office 3,100
Discount Expense 300
Advice staff bonus 6,800
Advice staff wages 78,200
Office Staff wages 15,400
TOTAL $309,627 $309,627
QUESTION ONE CONTINUED
Additional Information
In: Accounting
The unadjusted trial balance of the Dairy Plus Company as of December 31, 2017 is found on the trial balance tab. The following information is required to prepare the necessary adjusting entries for the Dairy Plus Company.
1) The balance in Prepaid insurance represents a 24-month policy that went into effect on December 1, 2017. Review the unadjusted balance in Prepaid insurance, and prepare the necessary adjusting entry, if any.
2) Based on a physical count, supplies on hand total $4,050. Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry, if any.
3) The equipment is expected to have a 4-year useful life, and be worth about $10,000 at the end of four years. Review the unadjusted balance in Accumulated depreciation, and prepare the necessary adjusting entry to record the monthly depreciation, if any.
4) On December 26, the client paid a $13,800 60-day fee in advance, covering December 27 to February 24. Review the unadjusted balance in Unearned Consulting Revenue, and prepare the necessary adjusting entry, if any.
5) Dairy Plus's employee earns $120 per day for a five-day workweek beginning on Monday and ending on Friday. The employee was last paid on Friday, December 26. Review the unadjusted balance in Salaries expense, and prepare the necessary adjusting entry, if any.
6) In the second week of December, Dairy Plus agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $5,820. The terms of the initial agreement call for Dairy Plus to provide services from December 12, 2017, through January 10, 2018, or 30 days of service. The club agrees to pay Dairy Plus $5,820 on January 10, 2018, when the service period is complete. Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry, if any.
Unadjusted
| Dairy Plus | ||
| Trial Balance | ||
| December 31, 2017 | ||
| Account Title | Debit | Credit |
|---|---|---|
| Cash | 28,075 | |
| Supplies | 5,400 | |
| Prepaid insurance | 6,600 | |
| Equipment | 24,400 | |
| Accounts payable | 10,200 | |
| Unearned consulting revenue | 13,800 | |
| R. Richards, Capital | 38,000 | |
| R. Richards, Withdrawals | 1,300 | |
| Consulting revenue | 7,300 | |
| Rental revenue | 800 | |
| Salaries expense | 2,040 | |
| Rent expense | 1,900 | |
| Utilities expense | 385 | |
| Total | 70,100 |
70,100 |
I want the general journal answers.
In: Accounting
The unadjusted trial balance of the Home Perfection Company as of December 31, 2017 is found on the trial balance tab. The following information is required to prepare the necessary adjusting entries for the Home Perfection Company.
1) The balance in Prepaid insurance represents a 24-month policy that went into effect on December 1, 2017. Review the unadjusted balance in Prepaid insurance, and prepare the necessary adjusting entry, if any.
2) Based on a physical count, supplies on hand total $4,500. Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry, if any.
3) The equipment is expected to have a 4-year useful life, and be worth about $9,000 at the end of four years. Review the unadjusted balance in Accumulated depreciation, and prepare the necessary adjusting entry to record the monthly depreciation, if any.
4) On December 26, the client paid a $8,400 60-day fee in advance, covering December 27 to February 24. Review the unadjusted balance in Unearned Consulting Revenue, and prepare the necessary adjusting entry, if any.
5) Home Perfection's employee earns $150 per day for a five-day workweek beginning on Monday and ending on Friday. The employee was last paid on Friday, December 26. Review the unadjusted balance in Salaries expense, and prepare the necessary adjusting entry, if any.
6) In the second week of December, Home Perfection agreed to provide 30 days of consulting services to a local fitness club for a fixed fee of $3,660. The terms of the initial agreement call for Home Perfection to provide services from December 12, 2017, through January 10, 2018, or 30 days of service. The club agrees to pay Home Perfection $3,660 on January 10, 2018, when the service period is complete. Review the unadjusted balance in Consulting revenue, and prepare the necessary adjusting entry, if any.
| Home Perfection | ||
| Trial Balance | ||
| December 31, 2017 | ||
| Account Title | Debit | Credit |
|---|---|---|
| Cash | 16,485 | |
| Supplies | 4,500 | |
| Prepaid insurance | 7,700 | |
| Equipment | 30,600 | |
| Accumulated depreciation - Equipment | 500 | |
| Accounts payable | 6,200 | |
| Salaries payable | 450 | |
| Unearned consulting revenue | 7,700 | |
| C. Fields, Capital | 44,000 | |
| C. Fields, Withdrawals | 800 | |
| Consulting revenue | 8,900 | |
| Rental revenue | 400 | |
| Depreciation expense - Equipment | 500 | |
| Salaries expense | 3,000 | |
| Insurance expense | 700 | |
| Rent expense | 2,050 | |
| Supplies expense | 1,500 | |
| Utilities expense | 315 | |
| Total | 68,150 | 68,150 |
In: Accounting